Payments are high-trust communications in which two people exchange money. Sometimes, money exchanges occur directly between a payer and a payee, and the sale concludes when the two parties agree on a price and a currency.
However, physically exchanging the money is not always possible. In the table below we summarize some of the factors that hinder payment.
Physically exchanging money is not always possible.
|#||Payer and payee|
|1||Do not know each other.|
|2||Do not trust each other.|
|3||Are limited by the volume amount to exchange–too high.|
|4||Are limited by the speed of the transaction–too slow.|
|5||Are in different locations.|
|6||Use different currencies.|
|7||Speak different languages.|
Hence, the roles of intermediaries are to make it possible for payers and payees to exchange money and to build the necessary trust to conclude the payment.